Why I turned down the Dragons

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Soft toy maker, James Roupell, learnt the value of equity after appearing on the TV show

Name James Roupell

Title Managing director

Company BoBo Buddies

Founded 2012

Employees 4

Funding source Savings and personal loan

Growth trajectory “We turned over £50,000 in the five months
before filming and £200,000 in the year since”

“I decided to go on Dragons’ Den for two reasons: the money and
the publicity. I was really confident I could do well. I
was sure if I kept my cool I could win over the dragons,” says
Roupell, whose company sells soft-toy backpacks.

“The publicity was tremendous and it generated all sorts of interest from
retailers,” he says of the programme, which was aired earlier this month.
The downside was that the dragons’ £50,000 of investment required him to
give away 30-40 per cent of his business. “I had a sounding board of
advisers who run all sorts of toy businesses. I hadn’t pinned all my
hopes on Dragons’ Den. These guys explained that doing the volumes I
was doing, £50,000 would be quickly swallowed up. I had £150,000
of stock coming in, so one of the advisers offered £50,000 as a short-term
loan at a small interest rate. This meant I didn’t need to give away
any equity in my business,” he explains. “I went back to the dragons and
explained. They were very understanding.”

Until filming the programme, Roupell had funded the company himself —
£30,000 saved over three years while living at home.

“I came up with the idea after a flight in which I was
surrounded by kids with endless pillows, blankets and backpacks and I
remembered Alan, a teddy my granny had sewn a blanket inside. I thought,
why don’t I make something like that.”

Roupell and his gran made the prototypes and then sourced a manufacturer in
China, launching the product in October 2012. His first consignment of 4,000
toys sold out and he started to secure orders from bigger retailers. “The
better you are doing, the bigger the numbers you need to supply, the more
money you need. I had orders, I just needed to fulfil demand,”
he says.

Since last April, the company has grown organically, although he has plans to
raise finance in the future. “As the demand increases there will be a stage
when it becomes difficult. I would like to look at merging with a
bigger company or taking a partner on board.”